Coverdell Education Savings Account (ESA)

Open a Coverdell ESA1 for a student under 18 years old, or a special needs beneficiary, and start growing their savings for qualifying education expenses. 

Coverdell Education Savings

Coverdell ESA benefits for your family

  • Feel prepared for the future: This federally insured trust or custodial account helps you have peace of mind by covering expenses for tuition, books, supplies, and room and board for elementary and secondary schools (K–12), college, and other higher-education institutions.
  • Grow your savings: Your Coverdell ESA funds grow tax-free until withdrawn. The beneficiary may receive tax-free distributions to pay for qualifying expenses prior to turning 30. You can also make after-tax contributions of up to $2,000 a year. It’s never too late or too early to start saving — any amount is good!
  • Fund distribution: Funds must be distributed by the time the beneficiary turns 30 years old. The remaining education savings account funds will be distributed to the beneficiary and the earnings will generally be considered taxable income of the beneficiary. Special-needs beneficiaries are not subject to any age restrictions. 
  • We’re with you: Our team is here to help you reach your education savings goals. Get started by calling 915.774.6879, toll-free at 1.800.772.4328, ext.6879.
We’re Here to Answer Your Coverdell Education Savings Account Questions
  • Are there eligibility requirements to open a Coverdell Education Savings Account?
    Yes, the beneficiary of a Coverdell Education Savings Account (ESA) must be a student under 18 years of age, or a special needs beneficiary, and other eligibility requirements may apply. To learn more, speak with a GECU representative at 915.774.6879, toll-free at 1.800.772.4328, ext. 6879.
  • How much can I contribute each year into a Coverdell Education Savings Account? 
    You can contribute $2,000 each year into a Coverdell Education Savings Account. 
  • Are my deposits insured? 
    Yes, your deposits are insured by NCUA up to $250,000.
  • How long do I need to save for?
    The amount you save depends on how much you’d like to save and how long you have prior to your child’s education. Check out our savings goal calculator to calculate how much and when you need to start saving.
Membership eligibility is required.
1Certain tax implication and contribution limitations apply to Education Savings Accounts (ESA). Consult your tax adviser for details.
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